DoD's $675K R&D contract for hyperspectral sensors awarded to Spectral Sciences, Inc

Contract Overview

Contract Amount: $6,750,131 ($6.8M)

Contractor: Spectral Sciences, Inc

Awarding Agency: Department of Defense

Start Date: 2017-04-20

End Date: 2026-07-27

Contract Duration: 3,385 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SMALL, INEXPENSIVE HYPERSPECTRAL SENSOR PACKAGE FOR PENETRATING UAV PLATFORMS

Place of Performance

Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $6.8 million to SPECTRAL SCIENCES, INC for work described as: IGF::OT::IGF SMALL, INEXPENSIVE HYPERSPECTRAL SENSOR PACKAGE FOR PENETRATING UAV PLATFORMS Key points: 1. Contract awarded for specialized hyperspectral sensors, indicating a focus on advanced imaging capabilities. 2. The contract's duration of over 9 years suggests a long-term research and development objective. 3. Research and Development in Physical Sciences is a key area for technological advancement. 4. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed carefully. 5. The small contract value relative to typical DoD procurements may indicate a niche or early-stage technology. 6. The award to a single entity, Spectral Sciences, Inc., warrants scrutiny regarding competition and pricing.

Value Assessment

Rating: fair

The contract value of $675,013 is relatively small for a multi-year Department of Defense research and development effort. Without comparable contract data for similar hyperspectral sensor packages for UAV platforms, it is difficult to definitively benchmark the value. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs than fixed-price contracts if not closely monitored, but it is appropriate for R&D where scope can be uncertain. The historical data point 'br: 1994' is too vague to be useful for comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the data does not specify the number of bids received. A full and open competition with a low number of responsive bidders could still indicate limited market interest or specialized requirements that only a few firms can meet. Further investigation into the number of proposals received would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable approach, aiming to secure the best value through a wide range of potential offerors. However, the ultimate benefit depends on the actual level of competition achieved and the resulting pricing.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Air Force, gaining access to advanced hyperspectral sensing technology for potential intelligence, surveillance, and reconnaissance (ISR) applications. The contract will deliver specialized hyperspectral sensor packages designed for integration with Unmanned Aerial Vehicles (UAVs). The geographic impact is primarily within Massachusetts, where Spectral Sciences, Inc. is located, but the technology's application could have national security implications. Workforce implications may include specialized engineering and scientific roles at Spectral Sciences, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk of cost escalation if not rigorously managed.
Limited public information on the number of bidders in this 'full and open' competition makes it difficult to assess the true level of market engagement.
The long contract duration (over 9 years) increases the potential for scope creep or technological obsolescence if not actively managed.

Positive Signals

Awarded under 'full and open' competition, suggesting an effort to maximize market participation.
The contract focuses on advanced R&D in a critical technological area (hyperspectral sensing).
The specific nature of the technology (hyperspectral sensors for UAVs) indicates a targeted investment in specialized capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for hyperspectral imaging technology is growing, driven by applications in defense, environmental monitoring, agriculture, and material science. While the exact market size for UAV-integrated hyperspectral sensors is niche, the broader hyperspectral imaging market is estimated to be in the hundreds of millions to billions of dollars globally. This contract represents a small but potentially significant investment in advancing this technology for defense purposes.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this award. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The focus appears to be on acquiring specialized R&D capabilities, and whether small businesses are involved would depend on Spectral Sciences, Inc.'s own subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure adherence to the fixed fee and manage allowable costs. Transparency is limited by the proprietary nature of R&D, but contract award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Research and Development Programs
Air Force Sensor Technology Development
Hyperspectral Imaging Systems
Unmanned Aerial Vehicle (UAV) Payload Development

Risk Flags

Long contract duration increases risk of technological obsolescence.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited information on the number of bidders for a 'full and open' competition.
Potential for specialized technology to have a limited market, impacting competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 million to SPECTRAL SCIENCES, INC. IGF::OT::IGF SMALL, INEXPENSIVE HYPERSPECTRAL SENSOR PACKAGE FOR PENETRATING UAV PLATFORMS

Who is the contractor on this award?

The obligated recipient is SPECTRAL SCIENCES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2017-04-20. End: 2026-07-27.

What is the track record of Spectral Sciences, Inc. in delivering similar hyperspectral sensor packages for defense applications?

Spectral Sciences, Inc. has a history of work in advanced optical and spectral technologies. While specific details on past contracts for UAV-integrated hyperspectral sensors are not provided in this data snippet, the company's focus on spectral sciences suggests relevant expertise. A deeper dive into their contract history, past performance reviews, and any publicly available project outcomes would be necessary to fully assess their track record for this specific type of deliverable. Understanding their experience with miniaturization for UAV platforms and the integration challenges would be key.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar R&D efforts?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development where the scope of work is not precisely defined at the outset, making fixed-price contracts difficult. The 'fixed fee' component provides the contractor with a predetermined profit margin. However, the 'cost plus' element means the government reimburses the contractor's allowable costs. For R&D, CPFF is generally considered acceptable, but it carries a higher risk of cost growth for the government compared to fixed-price contracts. Benchmarking requires comparing the fee percentage and the total estimated cost against similar R&D contracts for specialized sensor development, considering the complexity and duration.

What are the key performance indicators (KPIs) and milestones for this contract, and how are they being monitored?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee R&D contract, typical KPIs might include technical performance metrics of the sensor (e.g., spectral resolution, signal-to-noise ratio, detection limits), successful integration with UAV platforms, timely delivery of prototypes, and completion of testing phases. Monitoring would likely involve regular progress reports, technical reviews, and financial audits conducted by the contracting officer's representative (COR) and program management team. The effectiveness of oversight hinges on the clarity of these defined milestones and the rigor of the monitoring process.

What is the potential for technological obsolescence given the contract's long duration?

The contract duration of approximately 3385 days (over 9 years) presents a notable risk of technological obsolescence. Rapid advancements in sensor technology, particularly in the R&D phase, mean that a system developed over such an extended period could be outdated by the time it is fully realized or fielded. Mitigation strategies would involve incorporating flexibility into the contract for technology refresh, setting clear interim development goals, and maintaining close communication with the contractor to adapt to emerging technologies. Regular reviews of the technological landscape and the project's alignment with future needs are essential.

How does this contract's value and scope compare to other DoD investments in hyperspectral imaging or sensor technology?

At $675,013, this contract appears to be a relatively small investment within the broader context of Department of Defense spending on advanced technologies. Major defense programs often involve contracts in the tens or hundreds of millions of dollars. This specific contract likely represents an early-stage research, a component development, or a niche application of hyperspectral technology. Comparing it to other DoD investments would require analyzing spending across similar R&D categories, sensor development programs, and UAV payload procurements to understand its relative significance and strategic placement within the overall technology acquisition strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 30 4TH AVE STE 2, BURLINGTON, MA, 01803

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,124,458

Exercised Options: $6,750,131

Current Obligation: $6,750,131

Actual Outlays: $203,759

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline